The central bank made a profit of Tk 2,291 crore in FY 06 against Tk 1,891 crore in FY 05.

Out of the total profit, the central bank will deposit Tk 1,085 crore to the government exchequer, which will help the government reduce its bank borrowing significantly.

Banking sources said the government's borrowing from banks in the first month of the current fiscal crossed Tk 2,000 crore.

A BB source has attributed the profit growth to swelling income both in foreign and local sources.

Sources said the BB deposited its foreign currencies with different international banks and it is the interest from this deposit that contributed to BB's high income. Last year the BB was able to maintain around $ 3 billion foreign exchange reserves.

Last fiscal year, commercial banks suffered from liquidity crisis. To tackle the problem, these banks took loans from the BB by depositing treasury bills through reverse repo.

BB Governor Dr Salehuddin Ahmed yesterday signed the financial statement of the central bank for the year 2005-06.